$1m for AI-enabled mobile energy with second life batteries

$1m for AI-enabled mobile energy with second life batteries

Business news |
By Nick Flaherty

UK startup Allye has raised £900,000 ($1m) for its AI-based mobile energy storage systems using second life batteries.

Allye positions its Max system as the first mobile energy storage system using healthy battery packs from electric vehicles.

The 300kWh system combines battery storage technology and intelligent software to bridge the gap between containerised grid-connected stationary battery energy storage systems and off grid mobile temporary power. This is enough to power a typical factory for two days or 40 homes for a day and the capacity can also be increased by connecting several units together

Allye’s software-enabled hardware will initially target industrial and commercial customers, deploying self-learning battery systems at scale.

Repurposing Electric Vehicle batteries to create a circular economy. Production of a 75kWh EV battery pack emits more than seven tons of CO2e, representing the biggest source of embedded emissions in the production of a typical EV, according to McKinsey.

Allye is developing new diagnostic techniques to assess the remaining useful life of these batteries and repurposes them into its systems.

The funding will be used to support the manufacture and launch of the Max with first systems for industrial users in Q3 2023. Allye is targeting the installation of 10,000 Max units by 2030 providing an installed capacity of 3GWh. From 2030 onwards, Allye will produce 5,000 units per year

It is also developing other systems for commercial and residential markets using second life batteries using its intelligent distributed energy storage technologies. If the company’s sales targets and international expansion plans are met, Allye expects to generate £8.5million in revenue next year and £45m in 2025.

On-grid containerised battery energy storage systems (BESS) have increased in adoption, but are inflexible, bulky, expensive to install and difficult to transport. The Max is a smarter, cheaper and mobile alternative.

Off-grid temporary power solutions, such as diesel generators are carbon-intensive, noisy and uneconomical, with a typical genset consuming 18,000 litres of fuel a year and producing over 45 metric tons of CO2. The Max provides a noiseless, zero-emission substitute.

The Max sits behind-the-meter simultaneously supporting the grid and the consumer, storing energy off peak in the second life batteries to be used at peak times. The Max also has the capability to automate demand-side response while provide balancing services to the grid, this allows the grid to better manage network capacity constraints, frequency stability and dispatch power when needed. 

The funding comes from Elbow Beach Capital, with £650k and Alpha Future Funds in the £900k round following Allye’s emergence from stealth in June. Allye is EBC’s fifteenth investment making the company the UK’s most active specialist seed investor in climate technology.

“Allye’s innovative technology and the exceptional team behind the company align perfectly with our investment thesis. We are excited to support Allye on their journey as they tackle multiple pain points simultaneously and unlock the vast potential of energy storage solutions,” said Nick Charman, Chairman of Elbow Beach Capital. Allye is Elbow Beach Capital’s third investment in the battery technology and electric vehicle space following investments in Munro Vehicles and Anaphite.


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